Does the Checkers Development Agreement include an acknowledgement that the restaurant industry is highly competitive?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.02 Your Acknowledgments. You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect and preserve the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of Restaurants may change over time, that an investment in Restaurants involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Development Agreement includes an acknowledgement that the restaurant industry is highly competitive. Specifically, the agreement states that the franchisee acknowledges they recognize that the restaurant industry is highly competitive with constantly changing market conditions.
This acknowledgement is part of a broader section where the franchisee confirms they have read the agreement and the Franchise Disclosure Document, understand the terms, and accept them as reasonably necessary. The franchisee also confirms they have conducted an independent investigation of the business and understand the risks involved.
This acknowledgement serves to protect Checkers by ensuring that franchisees are aware of the competitive landscape and potential risks before investing. It also reinforces that the franchisee's success depends on their own abilities, efforts, and financial resources, rather than any guarantees from Checkers. This is a common clause in franchise agreements, as the restaurant industry is indeed highly competitive and subject to changing consumer preferences and economic conditions.